CUTTING energy intensity, measured as units of energy per unit of GDP, was listed as one of the major development goals in the annual government work report delivered by Premier Li Keqiang.

    Quite rare compared with previous government work reports, Thursday’s listed the index, closely related to carbon emission and pollution control, together with gross domestic product (GDP) growth, the unemployment rate and the consumer price index.

    The major development goals in the government work report had, at least in the past decade, never included an environmental index.

    The Central Government plans to reduce energy intensity by 3.1 percent in 2015, lower than the 3.9-percent goal in 2014.

    Although previous government work reports had set targets for energy intensity, it has never been placed in such a primary position in the government work report.

    Premier Li also pledged to continue reducing emissions of major pollutants.

    This year, China will cut the intensity of carbon dioxide by at least 3.1 percent, reduce both chemical oxygen demand and ammonia nitrogen emissions by around 2 percent, and reduce emissions of sulfur dioxide and nitrogen oxide by around 3 percent and 5 percent, respectively.

    In Thursday’s report, Li pledged to upgrade coal-burning power plants to achieve ultra-low emissions and strive for zero-growth in the consumption of coal in heavily polluted areas.

    Monetary policies

    China will continue to implement “proactive fiscal policy” and “prudent monetary policy” in 2015, while noting policy flexibility to sustain economic growth, according to Premier Li.

    Regarding macro-economic policy, the government will “pay greater attention to anticipatory adjustments, fine-tuning, and targeted regulation,” Li said in his government work report.

    Monetary policy will be “balanced between policy tightening and loosening,” Li said.

    The broad money supply, or M2, is forecasted to grow by around 12 percent, lower than 13 percent in 2014, but the actual supply may be “slightly higher than this projection depending on the needs of economic development,” Li added.

    Defense budget

    On Thursday, the national government announced a 10.1-percent rise in the national defense budget in 2015, the lowest growth rate in five years, as the country confronts mounting pressure in the face of an economic slowdown.

    That would make China the second-largest military spender in the world following the United States.

    Nonetheless, the 10.1-percent rise represented the lowest expansion to the military budget in China since 2010, when the defense budget was set to grow by 7.5 percent.

    The figure has since been on a multi-year run of double-digit increases, expanding 12.2 percent last year.

    According to Li, China’s national defense development would be coordinated with the country’s economic growth.

    WWII victory

    Premier Li said China will host events to commemorate the 70th anniversary of the victory in World War II (WWII) and the Chinese people’s War of Resistance against Japanese Aggression.

    He said China will work together with other countries to “uphold the victory” of World War II and international justice.

    China has announced it will hold a military parade this year to mark its victory over Japan. The event would be part of worldwide commemorative activities for the WWII victory.

    Japan invaded Northeast China in 1931 and had conducted a full-scale invasion since 1937. By the end of WWII, more than 35 million Chinese soldiers and civilians were killed or wounded, as only one result of the Japanese aggression and atrocities.

    HK and Macao

    The Central Government is determined to support the development of the Hong Kong and Macao special administrative regions and promote cooperation between them and the mainland, according to the government work report delivered by Premier Li.

    Li said the government will steadfastly carry out the principles of “one country, two systems,” the people of Hong Kong governing Hong Kong, the people of Macao governing Macao, and both regions enjoying a high degree of autonomy.

    “We will give full support to the chief executives and governments of the Hong Kong and Macao special administrative regions in governing their regions in accordance with the law, growing the economy, improving people’s standard of living, advancing democracy, and promoting social harmony,” the report read.

    Taiwan

    Li’s report vowed to continue opposing the independence of Taiwan and to keep cross-Straits relations on the same course towards “peaceful development.”

    “We will adhere to our policies concerning Taiwan and work to strengthen the political foundation of both sides of the Taiwan Straits, upholding the 1992 Consensus,” read the report.

    Less intervention

    According to the government work report, the country will further streamline administrative tasks and delegate more powers to lower-level governments and to society while improving regulations.

    Premier Li said the Central Government would ensure that provincial-level governments make their lists of powers and responsibilities open to the public.

    Local governments must “completely” let go of powers that should be delegated to the market or society, and properly exercise the power of review over all items that have been delegated to them by higher-level governments, the premier said.

    The government will cancel all non-administrative reviews, he said.

    “It goes without saying that powers should not be held without good reason,” Li said, adding that cuts to governmental power will be made to boost market vitality.

    SZ-HK Stock Connect

    China will launch the Shenzhen-Hong Kong Stock Connect program on a trial basis “at an appropriate time,” Premier Li said.

    The move, part of the world’s second-largest economy’s effort to deepen financial sector reform, came after the country launched a similar scheme, the Shanghai-Hong Kong Stock Connect, in November.

    Under the scheme, Hong Kong-based investors are allowed to trade Shanghai-listed stocks under a daily quota of 13 billion yuan (US$2.11 billion) and total ceiling of 300 billion yuan. Shanghai traders may invest in Hong Kong-listed stocks under a daily quota of 10.5 billion yuan and a total ceiling of 250 billion yuan.

    (Xinhua)

    ‘It goes without saying that powers should not be held without good reason.’

    — Li Keqiang